Oil prices were mixed in early trading on Monday. Concerns about weak demand in China were balanced by fears of rising tensions in the Middle East after Syrian rebels claimed victory over President Bashar al-Assad. Brent crude oil slightly dropped by 1 cent to $71.11 per barrel, while U.S. West Texas Intermediate (WTI) crude rose by 1 cent to $67.21 per barrel.
Last week, Brent oil prices fell over 2.5%, and WTI dropped by 1.2% as analysts worried there might be too much oil available next year due to weak demand. This worry continued even after OPEC+, a group of oil-producing countries, decided to delay increasing oil production and keep production cuts in place until the end of 2026.
Saudi Aramco, the largest oil company in the world, said it lowered its prices for January 2025 for buyers in Asia, reaching the lowest point since early 2021 because of weak demand from China.
Meanwhile, Syrian rebels claimed on state TV that they have overthrown President al-Assad, ending his family’s rule of 50 years. This has raised fears of more instability in an already troubled Middle East.
In the U.S., the number of oil and gas rigs increased last week, indicating that oil production might be going up, which caused prices to dip further. OPEC+ also decided to push back plans to increase oil output by three months, now aiming for April, and extended production cuts until 2026.
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